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C.A. La Electricidad De Caracas Apr 05
Standard & Poors, April 2005
Abstract
The rating on C.A. La Electricidad de Caracas (EDC) is constrained by: Operating in the Republic of Venezuela, which presents a currency control through the Comision de Administracion de Divisas (CADIVI); A still incomplete and untested regulatory regime with historical resistance to rate adjustments, including the lack of a formal concession agreement; EDC's reliance on a single natural gas and fuel oil supplier, Petroleos de Venezuela S.A., to meet the fuel needs of its generation assets; and High exposure to foreign currency debt, mainly because its revenues are in local currency. These factors are partially mitigated by: EDC's de facto monopoly operations in its service area, with a customer mix basically composed of residential and commercial clients (together representing 75%...
Companies mentioned in this report are: C.A. La Electricidad De Caracas ,Venezuela (Bolivarian Republic of),AES Corp. (The),Compania de Alumbrado Electrico de San Salvador, S.A. de C.V.,Empresa Electrica de Oriente, S.A. de C.V.,Empresa Electrica de Guatemala S.A. (EEGSA)
Action: Review
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
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